Sevendots' New Study Reveals Innovation as the Underleveraged Engine of Growth in the CPG Industry

Over half of brand owners identify lack of strategic thinking as the key barrier to fully leveraging innovation Over half of brand owners identify lack of strategic thinking as the key barrier to fully leveraging innovation The underlying reasons are multifaceted, including limited budgets due to a lack of confidence in ROI compared to other activities, the absence of a visionary and systematic approach, and inadequate measurement practices. Consequently, a staggering 78% of brand owners...

AMSTERDAM, 15/03/2024 (informazione.news - comunicati stampa - editoria e media)

The underlying reasons are multifaceted, including limited budgets due to a lack of confidence in ROI compared to other activities, the absence of a visionary and systematic approach, and inadequate measurement practices. Consequently, a staggering 78% of brand owners believe that the current management of innovation within the CPG sector is only somewhat effective or not very effective at all. Furthermore, the research highlights that 54% of brand owners identify the absence of strategic thinking and a clear framework as the primary barriers to achieving disruptive innovation.

Yet, there could be a silver lining: several studies suggest that brands perceived to be highly innovative grow much faster than others while companies that prioritize innovation also report superior short-term EBIT growth and long-term total shareholder return.

The study calls for a paradigm shift in how CPG companies approach innovation. It advocates for a strategy that transcends traditional product innovation and category definitions, urging firms to develop and implement a clear, effective path for innovation that balances short-term wins with long-term goals.

"In a rapidly evolving marketplace, returning innovation to the core of strategic agendas is not just an option but a necessity," said Andrea Bielli , Managing Partner, at Sevendots. "Our findings underscore the immense growth potential for CPG companies willing to rethink their approach to innovation, leveraging it as a powerful engine for growth, differentiation, and long-term success."

The Sevendots Growth Series is a comprehensive initiative that reflects the collective insights of over 500 CPG brand owners globally, aimed at driving transformation and fostering growth within the industry.

Sevendots is a leading consultancy specializing in industry strategy development and transformational initiatives for the CPG sector. With a rich history of empowering brands to achieve sustainable growth, Sevendots remains at the forefront of industry innovation and thought leadership.

For more information about the study, please visit www.sevendots.com.

Media Contact:

Christina Carè
Content and Marketing Manager
Sevendots B.V.
christina.care@sevendots.com
+39 348 78 088 02
www.sevendots.com

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